Saudi Aramco shelves plans for venture with Petronas, say sources

Saudi Aramco, according to surces is not going ahead with a joint venture with Petronas in Malaysia. (Courtesy: Saudi Aramco)

Saudi Aramco has shelved plans for a multi-billion-dollar refining and petrochemical joint venture with Petronas in Malaysia, industry sources familiar with the matter told Reuters on Wednesday.

The Refinery and Petrochemical Integrated Development (RAPID) at Pengerang in the state of Johor in southern Malaysia was to have had a 300,000-barrel-per-day refinery and petrochemical complex with a chemical output capacity of 7.7 million metric tons.

Other facilities at the site, which was to have started operations in the first quarter of 2019, were to have included a liquefied natural gas (LNG) regasification terminal.

The sources did not say why Aramco’s participation on the project had been put on hold. Aramco and Petronas officials could not be reached for immediate comment.

State-owned Petronas last year sought proposals for a $7.2 billion loan for the project, with separate guarantees from the company and Aramco, Thomson Reuters IFR reported in June.

In early 2016, Petronas said it would cut spending by up to 50 billion ringgit ($11.27 billion) over the next four years.
 

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Last Update: Wednesday, 20 May 2020 KSA 09:53 - GMT 06:53
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